Older workers hit the jackpot: Over-60s rake in pay rises

OLDER workers are getting bigger pay rises than other employees as bosses try to hang on to their knowledge and experience.

In two years the average income for over-60s rose by 6.1 per cent, ahead of the average 3.8 per cent[GETTY]

Between 2011 and 2013, the average income for over-60s in work rose by 6.1 per cent to £17,250.

It is the biggest wage rise of any age band and well ahead of the typical 3.8 per cent increase.

Not only are older workers getting paid more, numbers delaying retirement and staying in the workplace are increasing.

There are now 100,000 more staff over 60 than there were in 2011 and many are in senior positions, according to analysis of official figures by the Prudential.

Management roles saw the greatest increase in older workers, with an extra 32,000 in 2013 compared with 2011.

This 25.6 per cent increase appears to be reflected in rising salaries. In 2013, older managers earned an average of £25,200 compared with £24,000 in 2011.

There remains concerns that insufficient pension pots are forcing people to remain in work [GETTY]

It will be increasingly important for more over-60s to stay in the workforce

Dr Ros Altmann, the Government’s Champion for Older Workers

Dr Ros Altmann, pension expert and the Government’s Champion for Older Workers, said: “It’s encouraging to see that earnings for workers aged over 60 have risen. This will partly help them make up for their lost savings income, given the dramatic drop in savings interest.

“It will be increasingly important for more over-60s to stay in the workforce in coming years, partly because their pensions are likely to be much lower than they previously hoped, but also because they have huge amounts of experience that would be lost if they leave work when still relatively young.”

Prudential’s analysis of the Office for National Statistics data also shows that among over-60s women are the big winners in terms of pay rises, with average earnings increasing by 11.4 per cent compared with 4.2 per cent for men.

Stan Russell, retirement income expert at the insurance giant, said: “The relative success of older workers in the labour market is down to a combination of their increasing willingness to work on rather than retire, and the recognition by employers of the unique experience they bring to the workplace.

“Our previous research has highlighted the changing face of retirement and this latest analysis is further proof of the new retirement reality.

“Many older people are happy to stay in work for longer and they are now seeing the welcome side-effect of significant increases in annual earnings.

“However, there are those who would prefer to give up work but have had to delay their retirement because of insufficient pension savings.

“It is important to remember the money earned in the later years of a career may be too little too late, despite pay rises. The best way to secure a comfortable retirement income is to save as much as possible as early as possible.”